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EssieB (California)
Posts: 5
Posted:
A long-serving board president sent a letter to homeowners announcing their immediate resignation due to fellow board members’ mishandling of funds. A few weeks later, ballots for the annual election of directors were mailed with this person listed as a candidate. The homeowners were not notified of the status of the former president’s candidacy. The election was held in mid-October, and this non-candidate was re-elected to another two-year term.

The newly-elected member explained that their decision to resign was made after the ballots were printed, so the error was ignored. I do not think they plan to re-resign.

How should this have been handled, and should the election be voided and rescheduled?
GregoryT1
Posts: 315
Posted:
I think they really wanted to resign and there was a printed ballot that already left the barn.

Here is a link for you to take a look while the pros get back to you.

https://www.davis-stirling.com/HOME/D/Directors-Officers-Committees-Ethics-Menu
GregoryT1
Posts: 315
Posted:
The election process might be minor compared to the potential fraud that happened.
DeanJ
Posts: 1,786
Posted:
They were elected. They can serve if they desire.
SheliaH (Indiana)
Posts: 6,964
Posted:
Gregory may have a point - this board member got upset over the money issue and fired off a letter of resignation to everyone in a fit. You didnt provide details on the timing - how much time between the letter being sent and the ballots mailed out? How much time between people receiving the ballot and the election?

It may be the board hadn't had a chance to meet and decide whether to accept the resignation (that's usually how this works, so it can be noted in board meeting minutes). The board member might have also cooled down and spoken to the board privately, who then decided to let the homeowners decide.

Apparently they did - your neighbors are the ones who elected him/her. They received the letter before the ballot and could have voted another way, unless they didn't pay attention to what was written. Maybe some went to the board member and asked him/her to clarify his/her position. After that conversation, they may have told others and everyone decided to vote accordingly.

You don't need another election, but I would ask that board member (at an open board meeting in front of everyone)if he/she learned anything from all this. All this look like a temper tantrum and grown people should be adult enough to handle disagreements appropriately instead of like a 5 year old.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By EssieB on 11/06/2024 11:33 AM
A long-serving board president sent a letter to homeowners announcing their immediate resignation due to fellow board members’ mishandling of funds. A few weeks later, ballots for the annual election of directors were mailed with this person listed as a candidate. The homeowners were not notified of the status of the former president’s candidacy. The election was held in mid-October, and this non-candidate was re-elected to another two-year term.

The newly-elected member explained that their decision to resign was made after the ballots were printed, so the error was ignored. I do not think they plan to re-resign.
I think the first thing you need to do is grok the difference between a HOA Board director and an HOA officer (President, VP, Treasurer, Secretary). Nationwide in almost all cases: The owners elect directors (or possibly when there is an unexpected vacancy on the board, the other directors will appoint a director). But the Board elects officers.

When this president sent a letter saying he was resigning, did he say he was resigning as President? Or as a director? Or both? Legally it matters.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By EssieB on 11/06/2024 11:33 AM
A long-serving board president sent a letter to homeowners announcing their immediate resignation due to fellow board members’ mishandling of funds. A few weeks later, ballots for the annual election of directors were mailed with this person listed as a candidate. The homeowners were not notified of the status of the former president’s candidacy. The election was held in mid-October, and this non-candidate was re-elected to another two-year term.

The newly-elected member explained that their decision to resign was made after the ballots were printed, so the error was ignored. I do not think they plan to re-resign.

How should this have been handled, and should the election be voided and rescheduled?

Do you have election rules consistent with state law? Were any of the rules violated? If not, the election was valid. CA Civil Code sections 5100-5145. If there was a violation, you can file a claim in small claims court. If a violation is found, the judge is required to void the election. I would be more concerned with the money issues. CA boards are required to review the financials monthly. Directors have unrestricted access to records. Did he resigning director investigate the "mishandling of funds?"
KerryL1 (California)
Posts: 14,550
Posted:
Just had a few hours is "The Chair" the chemo chip, that is, so am tired .JUst a couple of things:

In CA, there is no requirement in Non-profit Corp.Code for the Board to "accept" a resignation. But check your Bylaws to see if such a requirement is there.

BUT if s/he sent the "resignation" to all owners, it is not valid -- I may be wrong: The letter of resignation should be addressed to the Board. All other owners & the PM could be copied.

"The homeowners were not notified of the status of the former president’s candidacy." What does this mean??? Are you saying, something should have been sent to owners that says, "Director xx xxx resigned effective xx/xx/xxxx" (IF resignation was legal!) "X xxx, however, continues to seek reelection for a director's 2 year term, for which your association is holding an election."

I'm thinking that resignation from their current term does not deny them the right to seek election on that ballots that were already sent out. In addition, in CA, the names of candidates have to go to Owners quite a long tine before the ballots are sent.

I fate blots DO say "election for president," your HOA really is a mess
TerriS6 (California)
Posts: 3,284
Posted:
Kerry, I'm sorry to hear this.
KerryL1 (California)
Posts: 14,550
Posted:
Thanks, Terri--truth is I was hoping you' go-follow up to are if my memories above are correct or brain-fog crazeeeee.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By ElleN on 11/06/2024 1:44 PM
Posted By EssieB on 11/06/2024 11:33 AM
A long-serving board president sent a letter to homeowners announcing their immediate resignation due to fellow board members’ mishandling of funds. A few weeks later, ballots for the annual election of directors were mailed with this person listed as a candidate. The homeowners were not notified of the status of the former president’s candidacy. The election was held in mid-October, and this non-candidate was re-elected to another two-year term.

The newly-elected member explained that their decision to resign was made after the ballots were printed, so the error was ignored. I do not think they plan to re-resign.
I think the first thing you need to do is grok the difference between a HOA Board director and an HOA officer (President, VP, Treasurer, Secretary). Nationwide in almost all cases: The owners elect directors (or possibly when there is an unexpected vacancy on the board, the other directors will appoint a director). But the Board elects officers.

When this president sent a letter saying he was resigning, did he say he was resigning as President? Or as a director? Or both? Legally it matters.

Good questions.
KerryL1 (California)
Posts: 14,550
Posted:
It might a good question if the required Candidates Form does not state that the candidate is running for a seat on the board of directors. That's what ours says an is probably requires. The positions xxx now hold do not matter b/c s/he resigned from them or thinks they did.

Our Candidates Form als also asks to fill out a blank about their current occupation. This form doesn't 'go to voters.Thier-authored Candidate Statement discusses their occupation, which they often discuss to show that thier bakgorun would be useful for boat service.

So we don't know, as Marshall suggested, that xxxx did not complete the form honestly, which th Board would see, or refer to their mgmt. contract with the Association on their Candiate Statement
EssieB (California)
Posts: 5
Posted:
Just noting there are over a hundred condos in the complex.

I got more info yesterday.

Apparently, the board member resigned at an open meeting shortly before the ballots were sent. The letter, sent a couple days later, said they were resigning from both the board and their position as president and included numerous examples of why.

There were about six weeks between their resignation and the date of the annual meeting. During that time, the management company asked the non-candidate about their intentions. The person indicated they were okay with being listed on the ballot and would serve if elected. The homeowners were not informed of this.

I was told Calif election code allows a non-candidate's name to be on a ballot.

The voters saw the person's name on the ballot and probably thought it was an unavoidable error. They were likely aware the person had resigned. When they voted, they probably did not know whether that non-candidate was willing to serve on the board. This might have affected which of the three candidates they decided to vote for.
GregoryT1
Posts: 315
Posted:
howdy and thanks for filling us in.

As an association member does the list of reasons the person did not want to run cause any alarms or issues>

the money item was a red flag for me.

Just wanted to know you thoughts and if you need this discussion board to assist on anything new in addition to your original request.
EssieB (California)
Posts: 5
Posted:
Thanks for offering to help, but I'm okay for now.

The reasons given for the resignation included several problems involving allegations of financial issues, failure to solicit multiple bids, and hasty decision-making.

And the other board members soon sent letters urging homeowners not to vote for that person and alleging rogue activities and poor decisions.

Back-and-forth allegations. It's a bit of a mess.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By EssieB on 11/07/2024 11:58 AM

The voters saw the person's name on the ballot and probably thought it was an unavoidable error. They were likely aware the person had resigned. When they voted, they probably did not know whether that non-candidate was willing to serve on the board. This might have affected which of the three candidates they decided to vote for.
In my opinion, the possible failure of various voters to ask questions is on them. If this person received enough votes from owners to be elected, then IMO he/she is lawfully elected to the board of directors. If he/she wants to resign again, then this is his/her choice. He/she is free to run for President again, though remember that chances are, the board (not owners) select the president.

I hope no one spends money on an attorney over this issue. Why? Because I think it is unlikely the answer will be black and white.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By EssieB on 11/06/2024 11:33 AM

The newly-elected member explained that their decision to resign was made after the ballots were printed, so the error was ignored.
IMO this is irrelevant. The guy/gal resigned from the current board. The latter does not mean he/she is refusing to run in the subsequent election. Nor did this person state he/she is refusing to be, say, a write-in candidate.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By ElleN on 11/07/2024 1:30 PM
The guy/gal resigned from the current board.
Post-o. Replace "current" with "old".
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By EssieB on 11/07/2024 11:58 AM
Just noting there are over a hundred condos in the complex.

I got more info yesterday.

Apparently, the board member resigned at an open meeting shortly before the ballots were sent. The letter, sent a couple days later, said they were resigning from both the board and their position as president and included numerous examples of why.

There were about six weeks between their resignation and the date of the annual meeting. During that time, the management company asked the non-candidate about their intentions. The person indicated they were okay with being listed on the ballot and would serve if elected. The homeowners were not informed of this.

I was told Calif election code allows a non-candidate's name to be on a ballot.

The voters saw the person's name on the ballot and probably thought it was an unavoidable error. They were likely aware the person had resigned. When they voted, they probably did not know whether that non-candidate was willing to serve on the board. This might have affected which of the three candidates they decided to vote for.

No. Every candidate must be qualified by the Inspector of Elections. Resigning would not disqualify but you can’t put someone else’s name on the ballot. Some election rules allow write-ins but a candidate’s name on the ballot had to be approved by the IOE. My question is: do you have election rules and was there an IOE?
KerryL1 (California)
Posts: 14,550
Posted:
The way I see it, perhaps through muddy glasses, is that resigning from the CURRENT term does NOT preclude xxxx from submitting their name as a candidate for the upcoming election for directors. OR having their name on the ballot.

So....how can this person be called a "non-candidate????" If they applied correctly by the deadline?

And it's not true that someone, who failed to apply for candidacy by a certain state-mandated date, can have their name on the ballot. If your bylaws or election rules do not forbid write-in candidates*, perhaps that's what was meant,

What matters is Calif statute, your Bylaws and your election rules, NOT the "back & forth" Between whom & who, by the way.

IF, btw, the "other" board members INDIVIDUALLY sent letters using their own funds to campaign against this person, that's legal.

IF board members sent a group letter OR individual letters using any HOA resources, in CA, the candidate would have been able to also use HOA resources to send such materials. Even if not if not in this HOA's Bylaws, it IS in its election rules. Your HOA had election rules, right Essie??? A new set was mandated by law on 1/1/22 (1/123?)

Look, if this person is so disliked by the rest of the Board, s/he will not be able to get much of anything done anyway.

*As ours do.
KerryL1 (California)
Posts: 14,550
Posted:
Yes, Terri--I see we overlapped.
EssieB (California)
Posts: 5
Posted:
I don't know for sure if we have codified election rules, but I'd assume so.

Yes, there was an IOE.
EssieB (California)
Posts: 5
Posted:
I don't think they applied "by the book." The ballots were printed, and the management company ascertained the candidate was "okay with it."

Write-in candidates are allowed, and they were tabulated.

I'm sorry I can't answer all your questions; I don't live there, so I'm not as involved as I probably should be.

I've watched a few Zoom meetings; they are cringeworthy.
KerryL1 (California)
Posts: 14,550
Posted:
You should be able to find much info on your HOA's website.

I believe your ballot package is required to tell you where to read you election rules.

If your Assoc. via your Board and/or PM did not "go by the book," I guess th section could be invalid.ut then what??? Do you rally want to he expose of a new election????

Says what size is your HOA?
KerryL1 (California)
Posts: 14,550
Posted:
Sorry: would you really want the expense of a new election,?? Electronic voting available 1/1/15 and cheaper that the th correct US mail requirements is a ways off AND your HOA must make new election rules, but that're not effective until 90 days before an election.

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